Showing posts from November, 2003
In Memoriam

My friend and a mentor in the practice of law, The Hon Joseph M. Nardi, Jr., died on November 23, 2003. He was a wise and generous person. He is missed already. read Judge Nardi's obituary

Social Security benefits will increase 2.1% next year, starting with the payments made in January. The maximum wage base for the combined employer/ee12.4% Social Secuirty tax will increase from $87,000 (in 2003) to $87,900 (in 2004). Wages in excess of this amount will not be subject to the Social Secuirty tax. Thus, the maximum Social Security tax(the combined amount for employer/ee and for a self-employed person) will rise from $10,788.00 (in 2003) to $10,899.60 (in 2004). All wages are subject to the 2.9% Medicare tax.
Fed Chairman Suggests Interest Rates have Bottomed
The increase in job creation and economic growth may mean no further reduction in interest rates. Chairman of the Federal Reserve, Alan Greenspan, indicated that the Fed's concern is shifting away from fears of slow/no growth to fears that the budget deficit should be reduced.NY Times Article
This is the time for Congress to consider deficit reduction by cutting government expentiures.
Unclaimed Refund Information Online
Taxpayers who think they may be missing a refund or advance child tax
credit should check, the IRS Web site which lets taxpayers track
both their refund and their advance child tax credit. "Where's My Refund?"
provides information about refunds and "Where's My Advance Child Tax
Credit?" provides information about the tax credit. Both are available on
the IRS home page.
New Jersey Can't Tax Companies That Have No Physical Presence in State

New Jersey's corporate tax on businesses that draw revenue from the state but have no employees or tangible property there violates the federal constitution, a state judge has ruled. Tax Court Judge Peter Pizzuto rebuked the state's efforts to tax a Wilmington, Del., company that owns the trademarks of the Lane Bryant clothing stores and collects royalties for their use. The ruling is significant since many businesses are organized similarly.

The issue of "tangible" versus "intangible" assets is becoming contested more frequently in audits in NJ and other states. Because of state budget deficits, it is probale there will be a push to tax everything!
Internet Tax Ban Expires
The Senate failed to re-enact the ban on the States Taxing Internet Sales. The temporary ban was first enacted in 1998 and has previously been extended. The big tax and spend states want to get their hands on sales taxes from internet sales and have heavily lobbied Congress to let the ban lapse. I anticipate Congress reauthorizing the ban. <a href="> Click here for more information</a>
PC Sales Slowing in 4th Qtr
The November 3, 2003 issue of investor's Business Daily reports a significant decline in anticipated PC purchases for the 4th quarter. This estimate is for both consumer and business spending. There may be an attempt to bolster the technology sector, but most likely not this year.